Are you thinking of starting a budget? One thing you will need to determine is the difference between want and need. Do you know the difference?
Here’s an example, a woman calls her friend and says “I need to get my hair dyed but I don’t know how to fit it in my budget.” The friend replies “No, you WANT to get your hair dyed.”
Again friend #1 states “You don’t understand, if I don’t get my hair dyed I’ll have a ton of gray hair.”
Friend #2 “I understand, but getting your hair dyed is a WANT. You NEED food, you NEED shelter, you NEED your utilities. You WANT hair appointments, you WANT a fancy car, you WANT to get your nails done.”
Still with me? Good. Do you see the difference here? When making your budget you start with three basic needs for survival. Food, Shelter, Utilities. After you make sure your funds can handle those, then you start looking at your car payments, other loans, other monthly expenses.
Take a look at your car loan, is it ridiculous? Do you really need a car that costs $500/mo? Even $300/mo???? If you’re really struggling financially, get yourself an older car that is in good shape. Its a great way to help your budget while still being able to get to work.
If you need help to determine if your car needs to go, give us a call at 608-643-2700 to set up an appointment to review your budget.